What is Professional Liability Insurance?
Professional liability insurance covers liability for damage caused by a professional mistake with a focus on the following activities for which this type of insurance is mandatory: accountants and auditors, attorneys, engineers, physicians, insurance brokers, bankruptcy administrators, bailiffs and other activities.
Professional liability insurance is very important for companies that offer highly specialized services. There are more and more professions that involve a specific type of service – advisory, consulting, expert, analytical or appraisal.
In what cases does professional liability insurance provide coverage?
Professional liability insurance provides coverage in case of:
- Negligence lawsuits;
- Lawsuits for errors and omissions;
- Errors due to imprecise communication between you and the client;
- Errors caused by third parties;
- Inability to provide contractual results of importance to the client’s business;
- Exceeding the deadlines agreed at the beginning of cooperation;
- Other errors made when interpreting, transcribing or sharing information of importance to the client.